Notes vs Rentals

[Barbara Johannsen]

Curious to hear from other investors — how many here prefer investing in notes vs. rentals? I’ve been learning more about mortgage notes as a way to create cash flow without tenant headaches. Anyone else exploring this strategy?

[Basit Siddiqi]

The one risk going forward is inflation.

If you invest in notes, you are getting a fixed amount in the future. Each future dollar is worth less as inflation increases.

With real estate, there is a built in hedge as you can increase rents.

I like notes as it is less work involved but there are some risks.